Lithia Motors (NYSE:LAD) Releases Q2 2025 Earnings Guidance

Lithia Motors (NYSE:LAD - Get Free Report) issued an update on its second quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 9.700-10.000 for the period, compared to the consensus earnings per share estimate of 8.488. The company issued revenue guidance of $9.4 billion-$9.6 billion, compared to the consensus revenue estimate of $9.6 billion.

Lithia Motors Trading Down 0.6%

Shares of Lithia Motors stock traded down $1.95 on Wednesday, hitting $331.29. The stock had a trading volume of 407,212 shares, compared to its average volume of 310,269. The company has a quick ratio of 0.31, a current ratio of 1.18 and a debt-to-equity ratio of 1.22. Lithia Motors has a one year low of $247.01 and a one year high of $405.68. The stock has a market cap of $8.62 billion, a price-to-earnings ratio of 10.44, a PEG ratio of 0.54 and a beta of 1.46. The stock's 50-day simple moving average is $328.39 and its two-hundred day simple moving average is $327.01.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its earnings results on Wednesday, April 23rd. The company reported $7.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.77 by ($0.11). Lithia Motors had a return on equity of 12.74% and a net margin of 2.30%. The firm had revenue of $9.18 billion during the quarter, compared to the consensus estimate of $9.19 billion. During the same quarter in the prior year, the business posted $6.11 EPS. The firm's revenue for the quarter was up 7.2% on a year-over-year basis. As a group, sell-side analysts predict that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 23rd. Stockholders of record on Friday, May 9th were issued a $0.55 dividend. This is a boost from Lithia Motors's previous quarterly dividend of $0.53. The ex-dividend date was Friday, May 9th. This represents a $2.20 annualized dividend and a dividend yield of 0.66%. Lithia Motors's dividend payout ratio (DPR) is currently 6.93%.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on LAD shares. JPMorgan Chase & Co. cut their price target on shares of Lithia Motors from $345.00 to $335.00 and set an "overweight" rating on the stock in a report on Wednesday. Citigroup upgraded shares of Lithia Motors from a "neutral" rating to a "buy" rating and cut their price target for the company from $415.00 to $375.00 in a report on Wednesday, April 23rd. Wells Fargo & Company lifted their price target on shares of Lithia Motors from $305.00 to $364.00 and gave the company an "equal weight" rating in a report on Wednesday, July 9th. The Goldman Sachs Group started coverage on shares of Lithia Motors in a report on Tuesday, June 3rd. They issued a "neutral" rating and a $340.00 price target on the stock. Finally, Bank of America lifted their price target on shares of Lithia Motors from $430.00 to $500.00 and gave the company a "buy" rating in a report on Monday, June 16th. Four research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $382.50.

Insider Buying and Selling

In other Lithia Motors news, Director Shauna Mcintyre sold 337 shares of the firm's stock in a transaction on Thursday, May 1st. The stock was sold at an average price of $295.94, for a total transaction of $99,731.78. Following the completion of the transaction, the director owned 1,632 shares of the company's stock, valued at approximately $482,974.08. This trade represents a 17.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.87% of the company's stock.

Hedge Funds Weigh In On Lithia Motors

Several large investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Lithia Motors by 13.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company's stock worth $2,487,000 after purchasing an additional 1,032 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Lithia Motors by 16.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company's stock worth $27,349,000 after purchasing an additional 13,407 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Lithia Motors by 67.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock worth $33,272,000 after purchasing an additional 45,716 shares during the last quarter.

About Lithia Motors

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.